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This article has been withdrawn as it was published elsewhere and accidentally duplicated. The original article can be seen here: 10.1108/08876049410053285. When citing the article, please cite: Constance A. Bak, Leslie H. Vogt, William R. George, I. Richard Greentree, (1994), “Management by Team: An Innovative Tool for Running a Service Organization through Internal Marketing”, Journal of Services Marketing, Vol. 8 Iss: 1, pp. 37 - 47.

Examines the development of new services in service organizations, which has often been incomplete and has resulted in the needs of the marketplace remaining unsatisfied. Considers the findings of a study comparing the process of new service development in different service industries. Reports on how development may be improved and offers a model allowing greater input from the service recipients.

Reviews the findings of a study investigating the adoption of a service innovation and the relative importance to consumers in making the adoption decision. Suggests managerial implications and recommendations as a result of the study. Identifies other service industries to which the implications could be relevant. Includes an appendix describing the methodology of the study.

Reports on content‐analysis research of television commercials for products, services and retail outlets attempting to discover whether the objectives or strategies used differ. Uses three frameworks for evaluation of the product and service advertisements. Finds that services, product and retail marketers are using different advertising strategies. Notes that many of the differences seem to be concerned with the heterogeneity, simultaneity and intangibility of services and discusses implications for managers of these findings.

Explores the extent to which consumers perceive various services as quality‐risk purchases. Describes a panel study which indicated that problem is felt by most types of services and therefore should be considered by service managers. Discusses possible strategies for reducing this perception.

Offers a fresh outlook for managing the delicate interaction between the customer and the contact employee in the service environment. Emphasizes that the quality of the customer‐employee interfacehas a great effect on customers′ perceptions of the quality and value of the service, as well as on their satisfaction. Suggests a model of how companies can improve this interface by treating employees ascustomers and customers as employees, thus developing lower cost and higher quality services and also higher levels of satisfaction on the part of both customers and employees. Recommends various steps for management to take.

In services marketing, the employee plays a central role in attracting, building and maintaining relationships with customers. The recognition of the central role of employees in service marketing has given rise to “internal marketing” programs strongly oriented to employee development. This paper explores the linkage between internal marketing activities (directed at employee recruitment, training, motivation, communication, and retention) and the more traditional external marketing activities (e.g., pricing, advertising, and personal selling). An examination of the relationship between the key elements of the services marketing management model (internal and external marketing, employee attitudes and behavior, and customer attitudes and behavior) demonstrates how service managers can enhance customer loyalty, satisfaction and perception of quality.